Copper Climbs for Fourth Session After Chinese Demand Soars
By Millie Munshi
bloomberg.com
Aug. 22 (Bloomberg) -- Copper in New York rose for the fourth-straight session as demand surged in China, the world's largest consumer of the metal.
China's refined-copper imports in July jumped 65 percent from a year earlier, the Beijing-based customs office said today. BHP Billiton Ltd., the world's biggest mining company, said global demand for commodities remains strong, driven by China. Copper, used in pipes and wires, has gained fourfold in the past four years as demand outpaced supplies.
``Globally, demand is holding up well,'' said John Gross, publisher of the Copper Journal in Cranston, Rhode Island. ``The environment is still one that would suggest continued strength in prices and volatile trading.''
Copper futures for December delivery gained 5.6 cents, or 1.8 percent, to $3.221 a pound at 11:49 a.m. on the Comex division of the New York Mercantile Exchange. The price climbed 2.4 percent in the previous three sessions. Before today, the metal climbed 10 percent this year.
``Demand growth from China is expected to remain robust,'' BHP said in a statement. The company reported an eighth consecutive record half-yearly profit because of consumption in China and higher commodity prices.
China's refined-copper imports last month climbed to 103,089 metric tons. Imports in the seven months that ended in July more than doubled to 1.03 million tons. The country has bought more copper in the last seven months than in the whole of 2006.
Equities Gain
The metal also rose as stocks gained in the U.S., traders said. Copper fell 6.3 percent last week, the biggest weekly drop in three months, on concerns losses in equity markets would spread and slow the economy. The Dow Jones Industrial Average gained as much as 1 percent today and the Standard & Poor's 500 Index added as much as 1.1 percent.
``The market is trying to reassess what the fair value of copper is,'' Michael Gross, a futures analyst at Liberty Trading Group in St. Petersburg, Florida, said in an interview yesterday. ``Copper and lot of the industrial metals are going to be tracking the stock market.''
BHP Billiton said a global credit crunch is unlikely to derail the five-year rally in commodity prices being driven by emerging economies such as China and India. ``Ongoing strength'' in Asia will continue to support global growth, the company said.
On the London Metal Exchange, copper for delivery in three months gained $139, or 2 percent, to $7,114 a metric ton ($3.23 a pound). Before today, the metal dropped 8.8 percent in the past 12 months.
To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net .
Last Updated: August 22, 2007 12:00 EDT |
